Cathay General Bancorp (NASDAQ: CATY) stock is soaring 5.04% in pre-market trading on Wednesday following the release of its first-quarter 2025 earnings report. The company's results demonstrated resilience in a challenging economic environment, with earnings per share (EPS) surpassing analyst expectations.
The bank holding company reported an EPS of $0.99, beating analyst estimates by 2.9%. This positive surprise appears to be the primary driver behind the stock's significant uptick. While revenue remained flat at $172.3 million compared to the same quarter last year, and net income saw a slight decrease of 2.7% to $69.5 million, investors seem encouraged by the company's ability to exceed earnings projections.
Looking ahead, Cathay General Bancorp's future prospects appear promising. Analysts forecast revenue growth of 12% per annum on average over the next two years, outpacing the 7.0% growth projected for the US banking industry. This positive outlook, combined with the earnings beat, has likely fueled investor optimism, contributing to the stock's pre-market surge. As the market opens, all eyes will be on Cathay General to see if this upward momentum continues throughout the trading session.
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